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Leasehold Reforms: Empowering Homeowners with Rights and Protections

In a significant stride towards creating a fairer and more equitable housing market, the UK government has introduced the Leasehold and Freehold Reform Bill to Parliament. This monumental legislation aims to grant millions of homeowners in England and Wales enhanced rights, powers, and protections over their homes, marking the most substantial leasehold system reform in a generation. This blog delves into the critical provisions of the bill and how they will empower homeowners. 

More Accessible and Cheaper Freehold Purchase 

One of the central objectives of the Leasehold and Freehold Reform Bill is to simplify and reduce the costs associated with leaseholders purchasing their freehold. This change ensures that homeowners pay less while obtaining greater security. 

Extended Lease Terms 

The bill introduces an impressive change by increasing the standard lease extension terms to a staggering 990 years for both houses and flats. Previously, these terms were limited to 50 years for houses and 90 years for flats. This extension provides leaseholders with long-lasting ownership and eliminates the hassle and expenses of future lease extensions. 

Greater Transparency in Service Charges 

Homeowners will benefit from improved transparency over service charges. Freeholders and managing agents will be required to issue bills in a standardized format, making it easier for homeowners to scrutinize and challenge these charges. 

Empowering Leaseholder Management 

The legislation empowers leaseholders by making it easier and more affordable for them to take control of their property's management. This includes the ability to appoint the managing agent of their choice. 

Fairer Legal Costs Regime 

The bill rebalances the legal costs regime by scrapping the presumption that leaseholders must cover their freeholders' legal costs when challenging poor practices. This change removes a significant deterrent for leaseholders who wish to contest their service charges. 


Access to Redress Schemes 

To address poor practices, the government will extend access to redress schemes for leaseholders. Freeholders managing their buildings directly must belong to a redress scheme, ensuring accountability and fairness. 

Streamlined Home Buying and Selling 

The legislation aims to expedite buying or selling a leasehold property by setting maximum time limits and fees for obtaining home buying and selling information. 

Rights of Redress for Private and Mixed Tenure Estates 

Homeowners on private and mixed-tenure estates will have comprehensive rights of redress, allowing them to receive more information about charges and challenge their reasonableness. 

Empowering Residents of Mixed-Use Blocks 

Leaseholders in mixed-use blocks of flats will see their rights expanded. The floor space limit for accessing the Right to Manage or Collective Enfranchisement will increase from 25% to 50%, giving more leaseholders control over their property. 

Equitable Rights for Freehold Homeowners 

The bill levels residents' rights in freehold estates, granting them equivalent rights to transparency over estate charges and ensuring fairness for all homeowners. 

Ban on Leasehold Houses 

To create a more equitable housing market, the bill bans the sale of new leasehold houses, with exceptions only in exceptional circumstances. This change ensures that most unique houses in England and Wales will be freehold from the outset. 

Eliminating the Two-Year Ownership Requirement 

The requirement for new leaseholders to have owned their house or flat for two years before they can extend their lease or buy their freehold will be removed, further simplifying the process. 


The Leasehold and Freehold Reform Bill introduced to Parliament signifies a pivotal moment in the UK housing market. It addresses longstanding imbalances between leaseholders and freeholders, granting homeowners a fairer deal, greater protections, and enhanced rights. With its multifaceted approach, this legislation empowers current homeowners and sets a foundation for a more equitable housing future. 

As this bill progresses through Parliament, additional amendments and measures will be introduced, reinforcing the government's commitment to leasehold reform. With these reforms, the UK takes a significant step towards upholding and strengthening homeowners' rights and protections. 

The government's ongoing consultation on capping ground rents for existing leases demonstrates its dedication to safeguarding leaseholders from unregulated ground rent practices. As the housing market transforms, these reforms promise a brighter, more secure future for homeowners across England and Wales.


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